WASHINGTON (8/23/13)--Sloppy account transfers, poor payment processing and loss mitigation errors are some of the mortgage servicing mistakes identified by the Consumer Financial Protection Bureau's review of banks and nonbank mortgage servicing examinations undertaken between November. 2012 and June 2013.
The report covers supervising banks with total assets of more than $10 billion and nonbank servicers. There is no specific mention of credit unions within the report, other than the fact that CFPB supervises banks and credit unions with more than $10 billion in assets.
The CFPB report highlighted "both the mortgage servicing problems throughout the industry and the challenges of making sure that nonbanks are following federal law," CFPB Director Richard Cordray said. Fixing both of these issues is a priority for the agency, he said.
The bureau responded to mortgage servicing concerns it found by alerting the company in question, outlining remedial measures, and, when appropriate, investigating the issue and determining if enforcement actions were warranted.
The report found that many nonbanks "lack robust systems" for ensuring they are following federal laws. Other issues identified in the CFPB report include:
The CFPB said it responded to these issues by reviewing loss mitigation decisions and related fees or charges to borrowers to determine whether any reimbursement was appropriate, conducting periodic testing to monitor areas of concern, and requiring reports on the status of ongoing corrective actions.
For the full CFPB release, use the resource link.